A "human error" made in a tender advertisement cost Buffalo City Metro more than R500 000 after a Potsdam housing project tender was advertised and awarded as a rural project instead of an urban one.
The tender, given to Aurecon South Africa (SA) consulting engineers, was awarded in 2014 for the design and project management of the Potsdam North Kanana rural housing project.
The area is near Mdantsane.
Although the preliminary design work has been completed, BCM acting human settlement head Mthunzi Ngonyama said in a report tabled in council recently that Aurecon SA was not willing to continue with the work until an agreement to increase the budget was reached.
Initially the metro was set to spend R3.3-million for the company’s work. However, because of the “human error” an increase of R613186 was demanded from BCM.
“It is evident that the error occurred when specification for bids to procure the services of the service provider was done.
“It was envisaged that the project would take place in rural areas and the design would address the rural service level standard,” the report signed by former acting city manager Nonceba Mbali-Majeng read.
The error was “discovered” from the comment received from the infrastructure services directorate on the design depot.
Mbali-Majeng said since the level of services had been upgraded to urban, the costs adjustment was unavoidable.
Angry councillors have since called for consequence management to be implemented against the person who was responsible for the “error”.
Ward 31 councillor Sindile Toni said: “I am in support of the recommendations made to note the contract amendment but we must add another recommendation that there must be consequence management taken concerning this matter.”
The DA said it had noted with “concern” a trend of increased budgets after tenders had been awarded and work started.
Last month the Daily Dispatch reported that another tender awarded to Aurecon SA to undertake a feasibility study, design and implement the construction of the Kei Road Water Treatment Works (WTW) was increased by more than 400% five years after the contract was awarded.
The project was aimed at improving treated drinking water supply to the upper Buffalo Water Supply Scheme by completing a thorough design based on a comprehensive feasibility study.
In 2012 the cost was R100-million. Last month it was increased to more than R500-million after various challenges were met.
BCM spokesman Sibusiso Cindi said: “The matter has been referred to council internal process for preliminary investigation to establish the same questions the media is asking.” — mamelag@dispatch.co.za
Costly human error for ratepayers
The tender, given to Aurecon South Africa (SA) consulting engineers, was awarded in 2014 for the design and project management of the Potsdam North Kanana rural housing project.
The area is near Mdantsane.
Although the preliminary design work has been completed, BCM acting human settlement head Mthunzi Ngonyama said in a report tabled in council recently that Aurecon SA was not willing to continue with the work until an agreement to increase the budget was reached.
Initially the metro was set to spend R3.3-million for the company’s work. However, because of the “human error” an increase of R613186 was demanded from BCM.
“It is evident that the error occurred when specification for bids to procure the services of the service provider was done.
“It was envisaged that the project would take place in rural areas and the design would address the rural service level standard,” the report signed by former acting city manager Nonceba Mbali-Majeng read.
The error was “discovered” from the comment received from the infrastructure services directorate on the design depot.
Mbali-Majeng said since the level of services had been upgraded to urban, the costs adjustment was unavoidable.
Angry councillors have since called for consequence management to be implemented against the person who was responsible for the “error”.
Ward 31 councillor Sindile Toni said: “I am in support of the recommendations made to note the contract amendment but we must add another recommendation that there must be consequence management taken concerning this matter.”
The DA said it had noted with “concern” a trend of increased budgets after tenders had been awarded and work started.
Last month the Daily Dispatch reported that another tender awarded to Aurecon SA to undertake a feasibility study, design and implement the construction of the Kei Road Water Treatment Works (WTW) was increased by more than 400% five years after the contract was awarded.
The project was aimed at improving treated drinking water supply to the upper Buffalo Water Supply Scheme by completing a thorough design based on a comprehensive feasibility study.
In 2012 the cost was R100-million. Last month it was increased to more than R500-million after various challenges were met.
BCM spokesman Sibusiso Cindi said: “The matter has been referred to council internal process for preliminary investigation to establish the same questions the media is asking.” — mamelag@dispatch.co.za
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